June 16, 2024
Insurance

6% Increase in Number of Drivers Seeking Lower Insurance Rates

The amount of U.S. consumers searching for car insurance in the first quarter rose by 6% compared to the previous year, as reported by credit bureau TransUnion. This highlights the push to save money as inflation puts pressure on consumer finances.

WHY IT MATTERS

Insurance shopping involves comparing different policies to find the one that best fits a customer’s requirements.

Customers tend to actively search for insurance during financial difficulties to find policies with lower premiums.

In April, auto insurance expenses increased by 22.6% compared to the previous year, marking the largest annual rise since the 1970s.

The increase was driven by higher costs for repairing more complex vehicles. Insurers also raised premiums due to frequent vehicle damage caused by extreme weather conditions.

KEY QUOTE

“With insurers experiencing improved profitability, it is likely that some will cautiously increase investments in acquiring new customers,” stated Stothard Deal, vice president of strategic planning at TransUnion’s insurance division.

FAQ

1. Why are customers actively shopping for auto insurance?

Customers are searching for insurance actively during financial hardships to find policies with cheaper premiums.

Conclusion

The rise in auto insurance shopping reflects the impact of inflation on consumer budgets. As insurance costs continue to climb, consumers are seeking out better deals to alleviate financial strain.

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